How does outward foreign direct investment contribute to economic development in less advanced home countries?

Figures & data

Figure 1. Share of global OFDI flows, 2000–2014 (%). Source: UNCTADStat database.

Table 1. Examples of investing companies from developing and transition economies.

Company	Industry	Home economy	Investment activities
Acer	Information technology	Taiwan	Investments in developing and developed countries (including the US), through acquisitions and greenfield FDI
AIC Corporation	Semiconductors	Malaysia	Investments in China, Singapore and Thailand
Arçelik	White goods	Turkey	Investments in Romania, Russia and other European countries
Cemex	Cement	Mexico	Investments in developing and advanced economies, including acquisitions in Europe and Latin America
City Developments Ltd (CDL)	Hotels	Singapore	International expansion through M&As in Southeast Asia, Oceania, Europe, etc.
China National Offshore Oil Corporation (CNOOC)	Oil and gas	China	Global acquisition of oil and gas fields, including Nexen in Canada
Companhia Vale do Rio Doce	Metals and mining	Brazil	International mining operations, supported with business investments globally
Gazprom	Oil and gas	Russia	Wide range of investment activities in developing and advanced economies
Haier	White goods	China	Investments globally, including in the US, Europe, Asia and Africa through greenfield FDI and acquisitions
Hikma Pharmaceuticals	Pharmaceuticals	Jordan	Investments in developing and advanced economies (e.g. Portugal and the US)
Huawei	ICT	China	Wide range of investments in developing and advanced economies
Mabe	White goods	Mexico	Investments throughout the Americas (e.g. in Brazil, Canada, Colombia, Ecuador, and Venezuela), including acquisitions
Mittal Steel/Ispat	Steel	India	Investments in developing and advanced economies, including acquisitions in the US and Europe
Lenovo	Personal computers (PCs)	China	The world’s leading PC company by market share, with investments globally (greenfield and acquisitions); acquired IBM’s PC business in 2004
Lukoil	Oil and gas	Russia	Oil and gas exploration and extraction projects in oil-rich countries
Marcopolo	Buses and coaches	Brazil	Investments in developing and advanced economies (e.g. Portugal)
Tata Motor	Automobiles	India	Investments in developing and advanced economies (e.g. Argentina, South Africa, UK)

Sources: Bonaglia et al. (2007), Kalotay and Sulstarova (2010), Mathews (2006), UNCTAD (2006).

Figure 2. Contribution of OFDI to economic development: an analytical framework.

Figure 3. Rates of return (%) from OFDI in 2011 for leading emerging economies. Source: IMF (2012). Rates of return are calculated by dividing FDI income in 2011 by the average of the FDI positions for 2011 and 2010 (UNCTAD, 2013).

Note: Figures in parentheses indicate foreign direct investment income in 2011, USD billion.

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